Fare & Service Change Process

In the spring of 2018, EMBARK held several community meetings to hear feedback on proposed fare and service changes. These meetings provided thoughts from the community on the upcoming changes. A full report of the public meetings can be found here. An official public hearing was held on April 6, 2018, and the changes were officially voted on and approved by the COTPA board on May 4, 2018.

The fare and service changes will go into effect on July 29, 2018. These changes include a variety of things ranging from route realignments, additional service, and reorganized fare structures to accommodate the upcoming OKC Streetcar Service. A full summary of the upcoming changes can be found below.

Upcoming Fare & Service Changes

We will no longer give out fare change cards on fixed-route buses. Plan to bring exact change for bus fares. Valid change cards will still be accepted to pay fares until June 30, 2019, but new change cards will no longer be provided. Find more information on bus fares & passes here.

The qualification age for Reduced Fare Benefits by Age is changing from 60 years old to 65 years old starting on July 29. Customers already carrying an EMBARK Reduced Fare Card will continue to receive the benefit. Learn more about Reduced Fare Benefits here.

If you have questions about the upcoming service changes or would like more information on EMBARK’s family of services, visit embarkok.com. You can also contact EMBARK via email at embarkok@okc.gov or by phone at 405-235-7433.

EMBARK is committed to providing safe and quality transit options across OKC, and our service would not be possible with our dedicated riders. Caleb Savage has been a frequent EMBARK rider for almost 2 years, as well as an OKC commuter cyclist. He commonly takes advantage of our Bike and Ride option; we sat down with him to talk about public transit in OKC and Biking and Riding with EMBARK.

What is your main route?

My bus is route 014, though sometimes I catch route 040.

Tell us about your commute:

“It takes about 15 minutes. I found quickly that a bus ride is also about 15 minutes. The drive is about 10 minutes. For me, it was just easy to use the bus for a negligible cost if it was inclement weather, or I could bike and leave whenever I wanted. I will usually bike into work. Then I will either bike home or take the bus home. Usually bike first, then bus. About 60-70% of my trips are either bike or bus.”

How far do you bike on average?

“The 3-5-mile range is typically as far as I’ll go.”

What tips would you give to someone who is wanting to start biking and riding?

“I would recommend riding a little bit for fun and like developing that habit. A 3 to a 3.5-mile ride to someone who has never done it before can be a little daunting. Once you can either walk or bike for one or two miles and you feel comfortable around that, it extends your trip.

“I know people who have a 30-minute drive to work. But what if you could spend that 30 minutes riding instead of driving and doing whatever you want – reading, checking email, whatever. People see that and they think it’s a good idea. So then let’s do it. If that means I need to take a bus ride with you to show you it’s not scary then let’s do it.”

Do you bring a change of clothes when you bike & ride?

“Yeah, I definitely do in summer and winter. In the winter I’ll bring warmer clothing but it’s just like bringing an extra jacket. It’s just getting used to needing that.”

What are your thoughts on EMBARK bike racks?

“I think it’s easy to use. I think it’s great and I’ve never had any problem with that. Every operator I’ve ever had has been fantastic about kneeling the bus to help me get it set up. I think it works great.”

In your opinion, how important is it for citizens to be involved and in support of public transit?

“There are tons of people who love the city, care about the city, advocate for the city and they have no idea about the transit system. So, if you are invested in OKC, if you care about the social issues that face our city, transit is a solution. It provides opportunities, connectivity, and accessibility. If you see OKC growing and becoming a more diverse place and more forward thinking, if you like where OKC is going, investment in transit is an investment in opportunity, is an investment in attracting companies”

How do you want to see transit grow in OKC in the future?

“I think there are some great plans set aside from COTPA and ACOG for developing future transit and regional transit. But it’s time to start connecting those dots. It’s great to have 20-year plans but if 20-year plans are on a 40-year timetable, then it’s not worth having. So, if we say we care about our city and we say transit is worth investing in, then we need to start doing it. So, there’s a call to people who have the flexibility and availability to try transit. If you say you value these things, become riders! Your use and activity will assist those who absolutely rely on it.”

How can you get involved in public transit in OKC? Come ride the bus! On the third Friday of the month from May to September, all fixed-route buses are free, making it the perfect time to try transit. View routes and maps at embarkok.com and join us on the third Friday of the month from now until September for 3rd Friday Free!

The Central Oklahoma Transportation and Parking Authority Board of Trustees recently received a Fare Change Policy recommendation from its consultant Four Nines Technology. Before adopting a policy, the Board seeks input on the recommended policy from its customers and the general public.

Below is the policy in its entirety. Please provide your feedback by Monday, January 22, 2018. You may leave input in the comments section, by emailing Embarkok@okc.gov , or mail them to:

Click HERE to watch Four Nines Presentation on the Fare Change Policy Recommendation.

Introduction

In 2017, EMBARK initiated a fare study to establish a fare policy, evaluate EMBARK’s fare structure, and develop a fare collection strategy. This Fare Change Policy is an outcome of the fare study. The Fare Change Policy also reinforces the 5-Year Board Initiatives that were adopted by the COTPA Board of Trustees on September 2, 2016.

In addition to the transit services provided under the EMBARK family of services, COTPA also provides public parking, vanpool, and bike share services in Oklahoma City and is investigating opportunities to integrate the payment of parking charges and bike share fees with transit fare products, by creating multimodal fare payment options. To the extent that parking and bike share fees are integrated with transit fare products that support multimodal fare payment, the Fare Change Policy also applies to parking, vanpool, and bike share fees.

The EMBARK Fare Change Policy is intended to support EMBARK’s fare policy goals and the resulting fare collection strategy as well as COTPA’s 5-Year Board Initiatives. The goal of the fare policy and fare collection strategy is a fare system that:

Provides choices for customers that are easy to understand, explain, and use,

Considers transit industry best practices in fare technology for the different modes while taking into consideration the costs of the technology and approaches used by similar size peers.

Fare Change Policy Objectives

The purpose of the EMBARK fare change policy is to provide guidance to EMBARK staff in planning and implementing fare changes for all of the public transportation services EMBARK provides. The objectives of defining and adopting a fare change policy are to:

Ensure that fares are reviewed on a regular basis as part of ongoing annual financial planning, so that transportation operations remain sustainable for EMBARK and affordable for its customers.

Provide a basis for evaluating fare changes, including the introduction of new fare programs, as well as fare increases or reductions, and changes to fare policies and fare structure, by defining criteria for program eligibility, and considering factors such as fare revenue impacts, administrative costs, data needs, fare collection and enforcement, operating impacts, and documenting agreements.

Provide a basis for triggering fare changes by establishing farebox recovery targets that consider fare revenues relative to operating costs, and recognize differences in the costs of providing different services as well as the role of fares in attracting and retaining customers.

Recognize that there is a regional interest in multimodal fare integration, using fare policies and/or fare collection technology to facilitate and broaden the use of public transportation, such as by using transit or bike share to meet first and last mile needs of drivers and their passengers who park in COTPA parking facilities, encouraging commuters to use public transportation for both commute and non-commute trips, and providing access to a variety of public transportation services.

Scope and Authority

This policy governs planning, adoption, and implementation of all fare changes, including fare increases and decreases as well as changes to the fare structure,[1] and reserves to the COTPA Board of Trustees the authority for all fare changes. Staff are responsible for planning fare changes, analyzing fare options that meet EMBARK’s revenue needs and other fare policy goals, obtaining public input, conducting fare equity analyses, making recommendations to the Board of Trustees, and implementing fare changes adopted by the Board of Trustees.

The fare change policy encompasses the fares for all of the public transportation services operated by EMBARK, including:

Fixed route bus

Streetcar (which is scheduled to begin operations in late 2018)

Paratransit

Ferry

Vanpool

Bike share

[1] Fare structure includes but is not limited to fare products, fare programs, fares based on distance traveled, and fares based on time allowed for travel and applies to all modes of service, individually and as a whole.

Context for Fare Changes

EMBARK’s operating costs must be fully covered by a combination of fare and non-fare operating revenues. Therefore, fares must be set with the objective of generating sufficient revenue to cover operating costs that are not covered by non-fare operating revenues.

The primary sources of revenue for EMBARK operations include fare revenues (including ferry charters, vanpool, and bike share fees as well as transit and paratransit fares), City general funds, federal grants, and other public reimbursements. Additional sources of revenue include state and local grants, advertising, and interest. Most of these revenues do not increase automatically with inflation, but require adjustment to support and maintain operations. Transit fares represent the largest source of transit revenue that is under COTPA’s control.

The overall intent of this policy is to plan for routine fare reviews on a regular basis by monitoring farebox recovery, a fare-related performance metric, on an on-going basis. This approach is designed to hold fare increases to modest levels by triggering the need for fare changes and adopting and implementing them as they are needed. Small, regular fare increases benefit customers and EMBARK. Customers benefit because they recognize that transit prices, like other costs, increase routinely but at modest levels that can be planned for and absorbed more easily than infrequent and higher increases. EMBARK benefits because it can count on steady, predictable income to plan, provide, and sustain quality service. Since farebox recovery results may trigger a fare review, EMBARK will also work to manage the operating expenses that also impact the farebox recovery ratio.

Fare Change Planning

The COTPA Board of Trustees will review fares and fare revenue projections annually, as part of the budget process. For this purpose, the COTPA Board of Trustees will set farebox recovery targets for each transit mode operated under the EMBARK service umbrella: fixed route bus, streetcar, paratransit, ferry, vanpool, and bike share. The farebox recovery targets will define the share of modal operating costs that will be covered by fare revenue. Farebox recovery target(s) will be set for a five (5) year forecast period, taking into consideration factors such as expected growth in service levels, ridership, fare revenue, non-fare revenue, and operating costs. Targets are set to provide some stretch from current farebox recovery levels, and It is expected that EMBARK services will improve and achieve their modal targets over the five-year period.

Factors that will help to determine whether and how much to change fares include actual and projected farebox recovery ratios by mode, actual and projected ratio of average fare to base fare, and projected revenues, operating costs, and ridership, as well as the fare policy goals stated in the Introduction to the Fare Change Policy. Applying these factors in considering fare changes recognizes that there is a need to allocate ridership and fare revenue associated with multimodal fare products to the modes on which they are used. Other factors that will be recognized in planning fare changes include:

The following process will be adhered to in order to consider and implement a fare change in accordance with this policy:

Annually, in conjunction with the annual budget process, EMBARK management will prepare and submit a report to the Board of Trustees assessing transit fares relative to inflation, peer fares and other performance indicators, actions taken to manage growth in operating costs, performance against farebox recovery targets, pass usage rates and pricing multiples, financial need, and other relevant information.

If a fare change is warranted based on the analysis, EMBARK management will recommend changes to the existing fare structure and pricing. At a minimum, recommended fare changes will consider payment options for customers; impacts on operations, fare collection, and fare enforcement; expected ridership and revenue impacts; and projected farebox recovery and average fare.

The COTPA Board of Trustees, after reviewing the management report and recommendations(s), will make a determination on how to proceed. If the Board of Trustees determines that no change is necessary, no additional action will be required until the next annual review cycle.

If the COTPA Board of Trustees determines that a change is warranted to the fares charged the general public:

The COTPA Board of Trustees will provide management with direction as to the fare policy to be presented for public comment.

EMBARK management will advertise and conduct public meetings on fares consistent with laws and regulations and EMBARK’s Public Participation Plan.

Public meetings will be held on the proposed fare change and public comments will be documented in accordance with the Service & Fare Changes Procedure in the Title VI Program.

A fare equity analysis of the recommended fares will be completed consistent with EMBARK’s Title VI Disparate Impacts and Disproportionate Burdens Policy for Major Service and Fare Changes, once COTPA operates 50 or more fixed route vehicles in peak service.

EMBARK management will consider the public comments received and the findings of the Title VI fare equity analysis, and prepare a report recommending appropriate action by the Board.

A public hearing will be conducted on the fare change prior to COTPA Board of Trustees action on fare change recommendations.

The COTPA Board of Trustees will determine whether to implement a fare change.

If a fare change is adopted, management will prepare and execute an implementation plan for the new fares.

Within one year of action by the Board of Trustees to adopt a fare change or make a finding that no change is necessary, management will prepare and submit a report reviewing fares as noted in the first bullet above.

EMBARK management will consider the following factors, at a minimum, in evaluating new fare programs:

Program eligibility, including implications of a proposed program for maintaining fare equity

Funding requirements to cover the impact of any fare revenue lost as a result of a fare change, including opportunities to reduce operating costs and increase fare revenues

Administrative costs of implementing and managing a fare change, particularly a new fare program

The ability to track data required for programs that are reimbursed by third parties on the basis of a metric such as ridership

The ability to collect and enforce the fare on the services EMBARK operates and with the available fare collection systems and equipment

Performance Metrics

Farebox recovery targets and fare revenue requirements will be determined for each mode by estimating modal operating costs, the non-fare revenues available to cover them, and the fare revenues needed to cover the remaining operating costs. Farebox recovery ratios are calculated as follows:

Fare revenue is defined as revenues earned from carrying passengers, including special programs such as reduced passes or ticket prices for students, seniors, or individuals with disabilities. Fares may be paid by the rider or by an organization (e.g., an employer, a university) on behalf of the rider. Fare revenues do not include subsidies, fare assistance to provide a reduced or free fare, or local matches. Therefore, fare revenues include fares paid by riders on-board transit, paratransit, or other vehicles providing public transportation services; transit fare products purchased before boarding; monthly fees paid by vanpool riders; and fees paid for bike share programs. Fare revenues also include payments made by employers on behalf of employees, universities on behalf of students, or conferences on behalf of attendees, as well as fare products purchased by non-profit organizations on behalf of their clients.

Operating costs are defined as the expenses associated with the operation of the public transportation agency and the goods and services purchased (i.e., consumable items with a useful life of less than one year or an acquisition cost which is the lesser of the capitalization level established by the agency for financial statement purposes or $5,000). Capitalized costs, vehicle capital lease expenses, and depreciation costs are not included as operating expenses.

Farebox recovery targets are set for the five-year period from FY2019-FY2022, with the intent of increasing the proportion of operating costs to be covered over that period, and achieving the target ratio by the end of the period.

The following modal farebox recovery targets are recommended by EMBARK management and will be approved by the COTPA Board of Trustees with the adoption of the Fare Change Policy. The streetcar farebox recovery target will be estimated at the end of the first year of service and set after the second year of service.